On Friday, November 12, 2021, KMWB Partner Nativ Winiarsky argued an important J-51 class action case concerning the fraud exception to the 4 year statute of limitations governing rental overcharges. In this case, the owner received limited J-51 benefits from 2006-2016 that were specifically reduced by the proportion of non-regulated units in the building. DHCR issued an order in 2017 that the landlord was to register as rent-stabilized, even those units that did not receive the J-51 benefits despite the reduction in the benefits proportionate to the number of non-regulated units. Upon receiving the order in 2017, the landlord complied and registered the units in issue. The tenants initiated a class action lawsuit alleging overcharge and fraud based upon the landlord’s alleged delay in filing the DHCR registrations. The lower court granted class certification and the landlord appealed arguing that late registration, standing alone, cannot be a basis for application of the default formula.
KMWB endeavors to continue to be at the forefront of these fraught and challenging issues concerning rent regulation and fighting on behalf of the New York real estate community. If you have any questions, please do not hesitate to contact Nativ Winiarsky and/or Jim Marino (who worked with Mr. Winiarsky on the brief), who can both be reached at 212-869-5030.
Watch Mr. Winiarsky’s argument: